200,000 New Homes To Be Built For First Time Buyers
David Cameron has announced that he will double the amount of new homes built ounder the starter homes initiative that was announced last month. He has said that he increase the number of discounted homes if his government is re-elected in May. The government announced last year that they were going to build 100,000 starter homes last year but has now pledged to double the number to 200,000. The pledge has been welcomed by housing charities as a step in the right direction. The new homes will be discounted by 20% for first time buyers under the age of 40.
There are some concerns amongst housing professional who have dismissed the idea of cheap homes as RyanAir housing. They are concerned that the need to delive discounted homes will mean will mean high density and low spec developments and could cost the taxpayer huge sums of moneyin the long run. The homes could also be situated in the less attractive parts of the UK where land prices are lower.
However the governemnt has said that it has set up a new Design Council to encourage good design among starter homes. The new design council whilst having some input will not have any powers. The new homes will cost in the region of £8bn on lost revenue that the councils will be losing out on in order to provide the discounts for the new homes. The housing minister, Brandon Lewis has said that 43,000 people had already registered for the scheme. Figure from the govenrment suggest that most first time buyers send on average £218,000 for a new home and the new starter homes scheme will mean a typical saving of £43,000.
You can qualify for a home if you are under the age of 40 and never owned your home before. Of course you are going to have to get a loan to buy the property but this should be made easier with the 20% discount being offered by the government. It is not yet clear if the banks of building societies will be offering special loans for these houses but this should become clearer in the near future. You have to own the property for a minimim of 5 years to avoid having to pay some of this deposit back. In London the price of a starter home will be capped ot £450,000 and outside of London the cap will be set at £250,000.
The government will be looking for